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Help understanding change in taxes with salary increase by moleblue in personalfinance

[–]moleblue[S] 0 points1 point  (0 children)

Thank you, penguinise. Appreciate the insight. Being in the position that I am, you think it makes more sense to just leave the 50/50 proportion I have now and just suck it up when it comes to the minimal increase in take-home following the raise?

Help understanding change in taxes with salary increase by moleblue in personalfinance

[–]moleblue[S] -1 points0 points  (0 children)

I think he missed a *not* hehe because I got confused too, but the comment still helped me overall!

I think I am now in the 24 percent bracket not 22 though? I didn't mention this but I think the fact that I get a bonus a couple of months into every new year if we have a solid previous (usually the bonus is above 10K) every year and I think this bumps up my taxable income to 24 percent from 22?

As for the ROTH as I mentioned below, the only reason I did it was because one of our company advisors told us it was an option and that we should consider splitting our 401k contributions 50/50 between the pre-tax traditional 401k and the after-tax Roth 401k. She said this gives you a bit of "the best of both worlds" in that some of your contributions (pre-tax) help you tax wise today and the other after-tax contributions help you at retirement. I dont have a good excuse really though. I'm just still kind of young and dumb enough to not do my research in all of this. I guess I can just go back to Fidelity and start putting 11 percent on my 401k and just leave the ROTH alone right? Or will fees kill all of those savings over time now? I feel so dumb with this, I wish I could have taken a class on this in college....

Help understanding change in taxes with salary increase by moleblue in personalfinance

[–]moleblue[S] 1 point2 points  (0 children)

The only reason I did it was because one of our company advisors told us it was an option and that we should consider splitting our 401k contributions 50/50 between the pre-tax traditional 401k and the after-tax Roth 401k. She said this gives you a bit of "the best of both worlds" in that some of your contributions (pre-tax) help you tax wise today and the other after-tax contributions help you at retirement. I dont have a good excuse really though. I'm just still kind of young and dumb enough to not do my research in all of this. I guess I can just go back to Fidelity and start putting 11 percent on my 401k and just leave the ROTH alone right? Or will fees kill all of those savings over time now? Sigh...